In: Statistics and Probability
n a random sample of seven people, the mean driving distance to work was 19.5 miles and the standard deviation was 4.3 miles. Assume the population is normally distributed and use the t-distribution to find the margin of error and construct a 95% confidence interval for the population mean mu. Interpret the results
Solution :
Given that,
= 19.5
s =4.3
n = Degrees of freedom = df = n - 1 =7 - 1 = 6
At 95% confidence level the t is ,
= 1 - 95% = 1 - 0.95 = 0.05
  
/
2= 0.05 / 2 = 0.025
t
/2,df = t0.025,6 = 2.447 ( using student t
table)
Margin of error = E = t
/2,df
* (s /n)
= 2.447 * (4.3 / 
7)
= 3.98
The 95% confidence interval mean is,
- E < 
 < 
 + E
19.5 -3.98 < 
 < 19.5+ 3.98
15.52 < 
 < 23.48
( 15.52 , 23.48)
lower bound 15.52
upper bound 23.48